Un-Real Estate in Bombay

The biggest real estate deal ever in Bombay was just completed. Reliance Industries (Mukesh Ambani) paid Rs 1,104 cr (around USD $276 million) for an 18.4 acre plot in the Bandra-Kurla Complex that has been set aside for a convention center. The overall price puts the deal at Rs. 9600/sq foot plus an additional Rs. 4000 for construction costs. The convention center is a sorely needed venue for Bombay as most big tradeshows can’t host an event due to the lack of any existing facilities. Absent from the bidding were the big Bombay builders such as the Raheja’s or Hirandandani’s, other bidders for the land were:
2. DLF-Akruti @ Rs. 1,050 cr
3. Reliance Communications (Anil Ambani) @ Rs. 1,011 cr
4. Gammon India @ Rs 1,011 cr
5. Emar Properties @ Rs. 911 cr

In addition to the commercial segment scaling new heights so is the residential market. In the last couple of weeks, several flats in the Nariman Point area have sold for between Rs 35,000 to 40,000/sq foot. Rates in the tony parts of Bombay such as Cuffe Parade, Altamount Road and Nepeansea Road are also hitting all new highs.